Volatility ahead: Risks and opportunities

Risks will remain this year, but they will also throw out interesting opportunities

Investors at a brokerage house in Shanghai last September. While most markets are projected to generate single-digit corporate earnings growth, the Chinese market, as measured by the CSI 300, is projected to see earnings growth of 14.9 per cent this
Investors at a brokerage house in Shanghai last September. While most markets are projected to generate single-digit corporate earnings growth, the Chinese market, as measured by the CSI 300, is projected to see earnings growth of 14.9 per cent this year. PHOTO: REUTERS
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With great power comes great responsibility, as the saying goes. Similarly, with high volatility widely projected for this year, does this come with more opportunities?

There has been a slew of uncertain events so far this year. The list includes the longest US government shutdown, lingering trade tensions affecting corporates, the looming shadow of Brexit, American dollar weakness, concerns over China's slowing growth, potential cuts in investments and capital expenditures, and possible declines in corporate earnings.

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A version of this article appeared in the print edition of The Sunday Times on January 20, 2019, with the headline Volatility ahead: Risks and opportunities. Subscribe